Fixed vs. Variable Income Extension Activity for Using Money Wisely Presentation
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1 Age Level: Fixed vs. Variable Income Extension Activity for Using Money Wisely Presentation Learning Objective: This extension activity, along with the Using Money Wisely presentation, should help students: identify different forms of income define fixed income, variable income and irregular income Materials Needed: whiteboard whiteboard marker Fixed, Variable, or Irregular Income? worksheet (1 per student) pencils (1 per student) Lesson Plan: 1. Ask students the following question: how do people get money? Write responses on the whiteboard. If students have difficulty answering, provide them with some examples from the list below: Sources of money (income) o wages o gratuities/tips o monetary gifts o tax refunds o salaries o commissions o allowances o investments 2. Share with students income falls into three categories: fixed income variable income irregular income money a person receives that does not change from one period to the next money a person receives that changes from one period to the next (e.g. tips) money a person receives occasionally
2 3. Distribute the Fixed, Variable, or Irregular Income? worksheet and pencils to students 4. Review the answers with students after they have completed the worksheet
3 Fixed, Variable, or Irregular Income? Instructions: read the situations below and identify all sources of income. Classify each source of income as fixed, variable, or irregular. Fixed Income does not change from one period to the next Variable Income changes from one period to the next (e.g. tips) Irregular Income Money a person receives occasionally 1. David just started his first job as a sales associate at a clothing store. He works 10 hours per week and earns $15 per hour. He also receives 3% commission on all clothing he sells. 2. Kate works as a hairdresser. She earns a monthly salary plus a commission for selling the salons products to customers. 3. Peter works as a musician. He sometimes gets asked to play at events, such as birthday parties or weddings, where he negotiates his hourly fee. 4. Angela is a waitress in a restaurant. She earns an hourly wage and receives tips from customers. 5. Elizabeth babysits her neighbour s children every Friday evening and earns $ Kaitlyn receives a monthly allowance from her parents. She also receives monetary gifts for her birthday. 7. Robert owns a house and rents out a spare room. Each month, he receives a rental cheque from his tenant. 8. Ken inherited $1,000 when his uncle passed away. 9. Jason s dad pays him to shovel the driveway each time it snows. 10. Fred sold his old video games at a garage sale.
4 Fixed, Variable, or Irregular Income: Answer Key Instructions: read the situations below and identify all sources of income. Classify each source of income as fixed, variable, or irregular. Fixed Income does not change from one period to the next Variable Income changes from one period to the next (e.g. tips) Irregular Income Money a person receives occasionally 1. David just started his first job as a sales associate at a clothing store. He works 10 hours per week and earns $15 per hour. He also receives 3% commission on all clothing he sells. Sources of income: hourly wage (fixed), commission (variable) 2. Kate works as a hairdresser. She earns a monthly salary plus a commission for selling the salons products to customers. Sources of income: monthly salary (fixed), commission (variable) 3. Peter works as a musician. He sometimes gets asked to play at events, such as birthday parties or weddings, where he negotiates his hourly fee. Sources of income: hourly fee (irregular) 4. Angela is a waitress in a restaurant. She earns an hourly wage and receives tips from customers. Sources of income: hourly wage (fixed), tips (variable) 5. Elizabeth babysits her neighbour s children every Friday evening and earns $50. Sources of income: babysitting (fixed) 6. Kaitlyn receives a monthly allowance from her parents. She also receives monetary gifts for her birthday. Sources of income: monthly allowance (fixed), monetary gifts (irregular) 7. Robert owns a house and rents out a spare room. Each month, he receives a rental cheque from his tenant. Sources of income: rental cheque (fixed) 8. Ken inherited $1,000 when his uncle passed away. Sources of income: inheritance (irregular) 9. Jason s dad pays him to shovel the driveway each time it snows. Sources of income: money from shoveling driveway (irregular) 10. Fred sold his old video games at a garage sale.
5 Sources of income: selling video games (irregular)
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